Srt Marine Systems Share Discussion Threads

[the prophet] 06/10/2016 10:12

Papy02, that's a very good point, perhaps SRT will be recognising a decent lump of the next phase of the Indonesian contract and thus they are not waiting for a new contract to be signed as such, as it relates to a deal already underway.

[lavalmy] 06/10/2016 10:10

TP

What interim results next week? 15th November, it says.

I read it pretty much as saying that they will be delivering significant goods in H2, though, of course, that doesn't have to be large in relation to the £2.7 million in H1. It looks like they are expecting to give us several updates in H2, as well as signing several contracts for projects.

It would help me a bit if they don't get news in til Xmas or so.

[yump] 06/10/2016 10:07

Agree with goodapple though; 'significant project deliverables' isn't as good as 'significant invoices'...

[hjb1] 06/10/2016 10:07

it's supposedly been going to "happen" for years and years..as I said, fewer "words" and more meaningful figures..

[papy02] 06/10/2016 10:06

To me "completion of ... project deliverables" speaks to revenue recognition of work ongoing on existing contracts, not new deals closed

[the prophet] 06/10/2016 10:05

I guess it explains why ST why ST wouldn't give any indication of trading at the AGM, which was unusual.
As Owenski points out, the core/mandate business is not a sustainable business model in its own right, and without projects the company would struggle to survive. Question is when are we going to see multiple overlapping projects to give a degree of security of increasing revenues and profits? It sounds like it is going to happen this half.
hjb, I would agree with you, it is time for the meaningful figures to start, but perhaps we may have to wait for next year's interims to see them, although there should be ample news and info well before then to support that.

[countryman5] 06/10/2016 10:03

. During the period there was material progress with several projects which will result in the completion of significant project deliverables in the second half. Upon completion the Company will make further announcements.

The NOMAD would not have allowed the word 'WILL' unless it is going to happen. SRT would have had to justify that word.

[yump] 06/10/2016 10:02

The Prophet

As long as the collective deliverables have a definite value that will really have a big effect on revenues, timing of payments not too much of a worry imo.

Its the waiting for the significant deliverables that's been the issue.

[hjb1] 06/10/2016 09:59

words matter not a jot, and it makes me cringe when all there is to hang onto is the word "will" in a statement,jeeez!
Time for the words to stop and the meaningful figures to start imo!

[yump] 06/10/2016 09:58

I see we've picked up a handful of first-time posters, presumably taking time off from ambulance chasing.

[the prophet] 06/10/2016 09:55

Some good points already made on this thread, thank you to everyone.

Well, the good news is that, yet again, SRT are very quick out the block in giving a TU just a few days past period end, with the interim results next month. All indicative of a well run company.

And yes, the 'will' word being used is indicative of confidence of good news to follow in this period. It needs to!

I am not sure of the excact meaning of this phrase:

"During the period there was material progress with several projects which will result in the completion of significant project deliverables in the second half".

To me it reads that these deals will be tied up in this half, that they are significant deals, but the phrase 'completion of significant project deliverables' indicates to me that we might not necessarily see revenues from these in the second half. Not that would be a problem if we had set ourselves out for a stonking 2017/2018 with a very strong order book resulting from these 'project deliverables'. I believe this is the scenario LaV fancies, so , if I am correct, LaV will be happy?
But it could leave SRT somewhat short of the forecast numbers, as pointed out by EE. Whilst that may not be a disaster, esp with news of new projects, it would then become something of a habit to miss forecasts.

Anyway, be pleased to hear anyone else's take on that phrase and what other folks interpretation of it is.
Thanks.

[hjb1] 06/10/2016 09:54

wow!! clutching at straws eh chaps?? I expect Tucker is too embarrassed to do a webcast after all the big talk and big numbers and he returns a pathetic £2.7m...

[smartmoney100] 06/10/2016 09:53

LazyJ omitted 'is pleased to provide an update' That certainly suggests SRT is feeling positive.

[9degrees] 06/10/2016 09:48

something must be happening as this is such a low key announcement today. Maybe they are all so busy either preparing for good news on orders or take over. I reckon for once that no news is good news ! Hold the faith!

[lazyj] 06/10/2016 09:40

FWIW. The absence of any reference to a webcast to accompany the TU next month, together with references to " material progress", " several projects", "will result in completion of significant deliverables in the second half", "upon completion .... market guidance", all give me much encouragement.
SRT and Mr Tucker are not Globo and Costis.
I look forward to the deferred webcast that will tell us about the lorry load of jam long term holders have been looking out for.
:-))

[eagle eye] 06/10/2016 09:35

No point having a webcast until there is news and H1 figures suggest that isn't yet.
H2 needs to come in strong...£9.3m revenue required to hit current forecast.
Wait for evidence of cash in tills and the shares will already reflect a fancy rating. Current market cap 127m shares x 40p = £50.8m. Quite rich on the basis of today's H1 £2.7m.
I think there is a decent business here, but the road appears bumpy for a while yet.

[smartmoney100] 06/10/2016 09:33

Well I'm keeping the faith, though I do have 50,000 less faith than yesterday!

[visionon] 06/10/2016 09:29

I wonder if Mr T is regretting the jam tomorrow stunt at the AGM...I found my jar yesterday (lurking behind the peanut butter) and of course there is no consume by date. Lucky really...

Absence of webcast is inconsistent but not compulsory.

A left field alternative idea is that they have had an approach and are now being all coy, although it would seem a bit early for that.

Oh well, 39p is still a long way up on the 20p of earlier this year. Perhaps we shouldn't lose sight of that.

[philburt] 06/10/2016 09:28

2vdm - I agree. As always with SRT, it's all about timing.
Personally, I wont even be considering 'being concerned' until at least year end results...

[amt] 06/10/2016 09:06

Never fails to disappoint. No webcast is a bit unnerving also.

[2vdm] 06/10/2016 09:05

Thank heavens we have some serious posters on this thread, TP,LaVal,owenski,YY etc. It helps make sense of this roller coaster.

[yumyum] 06/10/2016 09:01

Well put owenski. I fully agree.

[dj trading] 06/10/2016 09:00

Poor 1H TS - Revenue of just 2.7m and a loss of £1.2m
Will be interesting to see movement in Debtors and Accrued income when results published as cash remains at 1.8m.
Trade receivables at 31 March were £4.7m up from £1.6m the previous year.

Directors presumably happy with their performance having just awarded themselves 900k Options worth about £350k at the current price!

I still have concerns about their ability to deliver a 90m Euro contract given their existing and acquired skill base doesn't appear to fit with project work of this size on the other side of the world. And I'm amazed that they apparently say (AGM feedback) that they can simultaneously run multiple large MDM installation contracts in several countries.